Read on to learn which online education stocks will bring you the most profit in 2022.
With more and more students considering distance learning, online education stocks present an attractive opportunity. This is because many wealthy people have turned to online universities since the coronavirus pandemic.
We’ve done the legwork and put together a list of the top stocks in online education. If you read this article to the end, you will find out which stocks are the best investments for online education and where to find the best prices.
The education system has been hit harder than online education programs since the start of the coronavirus pandemic.
School isn’t just about studying and learning; it’s also about meeting new people, participating in extracurricular activities, and making lasting connections with hundreds, if not thousands, of people.
Since many students already have jobs but still want to earn a degree or earn credits toward one, online professors have realized that universities are the best option for most students. Depending on the circumstances, they can also be used in the classroom.
The benefits of investing in online education stocks and suggestions for potential investments are discussed here.
Best online education stocks
K12 is a virtual school run by a management company. K12 offers online public schools that can be attended by students as an alternative to traditional schools or homeschooling. K12 also offers blended learning partnerships, wherein traditional classroom instruction is supplemented with online materials.
K-12 benefited from the shift toward online education, which will be the norm for most of the decade by 2020. The third fiscal quarter of 2021 saw a 52.5% year-over-year increase in revenue and a net income growth of 171.8%.
K12 is a worthwhile investment because, despite the return to school, online education is gaining ground as a viable alternative to both conventional schools and homeschooling.
For video conferencing, many institutions (including homes) prefer Zoom Video Communications. In 2020, thanks to the COVID-19 pandemic, Zoom became a common noun and verb. The fact that movies and TV shows have been shot using Zoom is a good sign for the company’s success.
Although Zoom benefited from the COVID-19 outbreak, investors shouldn’t think of it as a pandemic stock whose value will decline once the crisis passes. Despite loosening regulations, online education and remote work are here to stay.
In addition, Zoom has been very profitable, providing the company with a substantial cash reserve. The market leader in video conferencing is set up for continued success.
By collaborating with educational institutions, 2U is able to provide online degree programs. Since its founding in 2008, the company has collaborated with numerous prestigious educational institutions such as USC, Harvard, and UC Berkeley.
Before 2019, only 2U’s graduate programs were available entirely online. It also provides credentials in several technical areas, including programming and cyber security.
The online education market is highly competitive, but the company’s revenue growth has been impressive nonetheless. Year-over-year growth in 2U’s total revenue was 44% in 2018, 40% in 2019, and 35% in 2020.
GSX Techedu (GSX)
In the People’s Republic of China, GSX Techedu Inc., a technology-driven education company, offers online after-school tutoring services for students in grades K-12. Math, English, Chinese, Physics, Chemistry, Biology, History, Geography, and Politics are just some of the many K-12 subjects covered in its after-school tutoring programs.
After ending the previous trading session at $16.15, GSX Techedu stock opened at $15.44 today. The most up-to-date price as of 25 minutes ago was $15.67. Listed on the New York Stock Exchange, GSX Techedu brings in about USD$7.1 billion in annual sales and employs 22,570 people.
Houghton Mifflin Harcourt Company (HMHC)
The Houghton Mifflin Harcourt Company is a global provider of educational materials, digital resources, and professional development for educators. Under the Heinemann label, the company provides supplementary and intervention solutions, professional services, professional resources, and educational services for educators, in addition to its core curriculum offerings in reading, writing, arithmetic, and the social sciences and humanities. HMH Holdings (Delaware) Inc. was the previous name of the company.
Stock in the Houghton Mifflin Harcourt Company jumped to $10.47 at the open, up from the previous day’s closing price of $10.23. The current price, as of a 25-minute delay, is $10.58. Houghton Mifflin Harcourt Company is a NASDAQ-traded, Fortune 500 company that, in its most recent fiscal year, brought in approximately USD$1.1 billion in revenue while employing 2,300 people.
American Public Education (APEI)
American Public Education, Inc. and its affiliates offer college-level courses both online and on campus. The business is divided into the American Public University System, Rasmussen University, and Hondros College of Nursing units.
Stock in American Public Education, which had closed the previous trading day at $22.11, began trading at $22.20. After a 25-minute lag, the most recent price was $22.25. The twelve-month revenue for NASDAQ-traded American Public Education is close to $606.3 million.
Adtalem Global Education (ATGE)
Workforce solutions are available from Adtalem Global Education Inc. Chamberlain, Walden, and the Medical and Veterinary divisions make up its business structure.
Stock in Adtalem Global Education, which had closed the previous trading day at $36.94, jumped to $37.04 at the open. The current price (with a 25-minute lag) is $37.49. Adtalem Global Education is a publicly traded company on the New York Stock Exchange with 4,682 employees and a 12-month trailing revenue of approximately $1.4 billion.
Stride is a company that oversees educational institutions. As an alternative to traditional schooling or independent study, the platform facilitates online education. The platform can also be used in tandem with schools to enrich and extend what students learn in the classroom.
The goal of starting this online education company was to standardize the curriculum that homeschooled kids follow. However, the company’s goals are now much broader than that. The company’s mission is to use individualization in education to help students of all ages succeed.
Parents worried about sending their children back to school because of Covid-19 have taken notice of Stride’s mission. The system also helps school districts that are looking for new ways to create hybrid and traditional school reopenings.
With the continued distribution of the vaccine, classes have resumed. However, for many students, online courses have become the standard in recent years. And more and more people are beginning to see it as a more practical and secure substitute for traditional classroom instruction. Because of this, Stride may be a worthwhile investment for the future of education.
New Oriental is China’s most popular online school. And that’s no small task, considering China has the world’s largest education system, serving 260 million people across approximately 514,000 institutions.
The online education market provides access to numerous courses, resources, and tools. K-12 students’ tutoring needs are the platform’s bread and butter. Private tutoring, online courses, and standardized test-taking help are other options.
New Oriental claimed in February 2021 that its network of 1,600 schools employed 48,000 instructors across 104 locations. The website claims that 65 million students are using the service.
New Oriental has been expanding rapidly since its inception in 2001. Recent tightening in China’s education, cryptocurrency, and technology sectors, however, has investors worried. Last month, the Chinese government announced a new policy of “double reduction.” One of the regulations calls for for-profit tutoring and educational service providers to become non-profits.
A Bloomberg report citing unnamed sources said that if this happens, companies won’t be able to go public or raise money. Bloomberg reported that “already public companies would probably no longer be allowed to invest in or acquire education firms teaching school subjects, one of the people said.”
The Tal Education stock is focused on the Chinese market. The website is the industry standard for after-school tutoring for students in grades K-12.
Tutoring in a wide range of subjects is available from Tal Education. Students can get help in a wide variety of subjects, including but not limited to mathematics, physics, chemistry, biology, history, geography, and politics.
It provides students with access to tutoring services across three distinct mediums of instruction. The options for student education today include traditional lecture halls, individualized premium services, and online modules.
You should be aware of the dangers of investing in this stock because of its focus on education in China. The regulatory crackdown has caused recent high volatility in these stocks.
Arco Platform: ARCE Online Learning Stocks
Arco serves more than 5,400 private schools with over 1.3 million students by providing them with printed and digital material based on Western models. Students can have a consistent experience regardless of where they go to school, making it easier for them to study abroad.
With a market cap of $2.4 billion, it is a significant player in the space industry. Despite the boom-bust nature of the Brazilian economy, which makes this a worthwhile investment for parents who want to ensure their children remain competitive in the global marketplace.
The population it serves is less affected by current circumstances than the entire country, so even though ARCE stock is down around 1%, it’s a buy.
Universal Technical Institute (UTI)
UTI has been in business since 1965 and currently has 15 campuses across the United States. There are courses for learning about boats, cars, trucks, and racing. Some of this instruction takes place in classroom settings, while others can be completed entirely online.
Students have plenty of physical space to isolate themselves from one another.
Potential students will choose a year of technical education instead of the traditional college campuses because of the increased difficulty they present.
Despite a 11% gain so far this year and a 73% increase over the past year, UTI shares haven’t caught on to the online education craze.
The company’s $212M market cap makes it a top pick among online education stocks. However, it’s not always stable.
Chegg primarily caters to students at the secondary and tertiary levels.
They offer some of the best digital learning tools of any direct-to-student learning platform.
Chegg offers textbook rentals for both physical and digital formats.
Chegg is a digital resource provider that offers more than just textbook rentals.
Chegg Writing and Chegg Math are two of these resources, and they each offer their own set of unique tools for assisting students with things like research, citation, and problem solving.
For those who need a little more direction, they also have Chegg Tutors, an online tutoring service, and Chegg Study, which offers online homework help and expert Q&A.
According to Chegg’s investor reports for 2020, the company earned more than $605 million in profit.
In 2021, Chegg is expected to reach profitability after generating revenues of over $650 million.
This stock has increased steadily over the past year, with a minor dip in late April after the company’s Q1 earnings reports fell short of Wall Street’s expectations.
However, we expect Chegg stock to continue its upward trajectory as students return to campus later this fall.
Pearson Lc is the largest educational publisher in the world.
The London, United Kingdom-based company Pearson operates in four main areas: courseware; assessments; test development; test processing; and test scoring.
Global Online Learning, Global Assessment, International Courseware, and North American Courseware are the four subsegments that make up these revenue streams.
All four of these industries receive an equivalent share of the service revenue pie.
The Pearson share price plummeted in the early days of the pandemic, but it has since recovered.
Demand for Pearson’s online education services boosted the company’s revenue by 5 percent in the first quarter of 2021.
Income investors should consider them as they currently yield 2.36 percent as dividends.
TAL Education Group
Throughout China, TAL Education Group offers after-school tutoring for students in grades K-12.
They provide small in-person classes, online courses, and individualized education services so that students can choose the best option for them.
TAL Education offers tutoring in a wide range of disciplines, from mathematics and science to history and biology to English and Chinese, and beyond.
Mobby and Firstleap are just two of the companies that have joined forces with this one.
If TAL is still dedicated to growing in 2021, its stock price might rise further.
The business plan calls for steady premium pricing alongside expansion of web and mobile offerings.
Despite significant stock price fluctuations in 2021, this company has posted very solid quarterly earnings reports in recent years.
Changing expectations for the Chinese stock market are probably to blame for this swing.
However, if they maintain their attention to digital products, this company has enormous growth potential.
Should you buy education stocks?
There are a number of promising education companies that could be good investments. The best stocks in the education sector are held by companies that have proven resilient and capable of maintaining growth despite challenges.
Why invest in online education stocks?
Stocks in the online education sector have become a hot investment opportunity this year, thanks to the rising demand for such courses. It arrived at a time when the economy was becoming increasingly fragmented. The world as we know it is shifting from an emphasis on physical locations to one on digital and technological ones.
Education stocks, like any other investment, carry the possibility of loss along with the possibility of gain. These stocks are vulnerable to changes in the market and the education sector, so do your research thoroughly before investing. Also, compare brokers to ensure you are getting the best features in your trading account, especially if you are either new to investing or haven’t done so in a while.